Representative Vincent Alden questions 1% audit fee and slush fund usage

During a recent session of the Northern Marianas Commonwealth Legislature, Representative Vincent O'Don raised significant concerns regarding the budgetary practices affecting small agencies. His remarks highlighted a troubling issue: the mandatory 1% fee that these agencies must pay, which he argued often exceeds the actual cost of necessary audits.

O'Don expressed frustration over the financial strain this places on agencies, suggesting that the surplus from these fees contributes to a "slush fund" rather than supporting the intended services. He questioned the logic behind requiring agencies to pay more than what their audits actually cost, emphasizing that this practice undermines their ability to operate effectively.

The representative called for a reevaluation of this fee structure, advocating for an exemption that would allow agencies to pay only what is necessary for their audits. He pointed out that the Office of Public Accountability (OPA) has been slow to provide updated budgets and audits, which complicates the legislature's ability to make informed funding decisions. O'Don argued that any private business operating under such conditions would likely face bankruptcy, underscoring the urgency of addressing these financial discrepancies.

The discussion reflects broader concerns about fiscal responsibility and transparency within government operations, particularly how budgetary decisions impact the functionality of local agencies. As the legislature continues to navigate these financial challenges, O'Don's call for reform may resonate with many constituents who rely on these agencies for essential services. The meeting concluded with a commitment to further explore solutions that would alleviate the financial burdens on small agencies, ensuring they can maximize their resources effectively.